Applied Digital Corporation has entered into two 15-year lease agreements with CoreWeave, an artificial intelligence cloud services provider backed by Nvidia, to deliver 250 megawatts of critical IT load at its Ellendale, North Dakota data center campus. The leases are expected to generate approximately $7 billion in revenue for Applied Digital over the lease period. Applied Digital's shares surged 54% following the announcement. CoreWeave retains an option to access an additional 150 megawatts at the Ellendale campus, positioning the site as a scalable hub for expanding AI and high-performance computing workloads. The first 100 MW data center is expected to be operational in the fourth quarter of 2025, with a second 150 MW facility scheduled for mid-2026. A potential third 150 MW building is in the planning stages for 2027. The Ellendale campus currently has 400 MW of capacity and is designed to scale up to 1 gigawatt. Applied Digital is transitioning into a data center real estate investment trust and has received up to $5 billion in funding from Macquarie Asset Management, with $900 million specifically for the Ellendale campus. The company also operates a 100 MW data center in Jamestown, North Dakota, and is planning additional facilities in Iowa and South Dakota. CoreWeave's shares have surged, trading around $154, up 260% from its IPO price of $40 in March 2025. The company reported a 420% increase in revenue on its first public earnings call and recently signed a $4 billion cloud deal with OpenAI. CoreWeave also holds a 13.06 million share stake, or 5.5%, in Applied Digital via warrants at a $7.19 strike price. Other recent CoreWeave deals include a 250 MW lease with Galaxy and partnerships with Blue Owl, PowerHouse Data Centers, and Chirisa, which raised $750 million for further data center build-outs. Applied Digital CEO Wes Cummins said, "These leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing."